Screening for High-Range Stocks After Three Down Days

Summary

This stock screen combines daily price range, a bounded intraday decline, and three consecutive lower closes. Its stated rules seek stocks with a range above 1 and a daily low between 4% and 5% below the prior close, followed by a three-session falling-close sequence. The accompanying Python example also filters out some stocks by name, market value, price-to-book ratio, and price-to-earnings ratio.

The document presents the conditions as a technical selection idea, but it supplies no backtest, performance evidence, or rationale for the thresholds. Its prose and sample implementation do not fully agree: the code checks for a low at least 5% below the previous close and its range test uses a 1% comparison, so it may not implement the described screen. The author flags noisy or missing data and market sentiment as risks, and suggests adding indicators and trading volume. These conditions alone do not establish that a selected stock will rebound or perform well.

Key ideas

• The screen looks for a daily range above 1 and a daily low 4% to 5% below the previous close.
• It also requires closing prices to decline over three consecutive sessions.
• The sample code adds filters based on listing name, market value, price-to-book ratio, and price-to-earnings ratio.
• The prose rules and code checks differ, so the example may not faithfully reproduce the stated screen.
• No performance test is provided, and noisy data or broad market conditions can undermine the signal.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.